Payments credit union service organization PSCU on Wednesday (August 24) announced its board of directors has approved a $54 million investment in Lumin Digital, the company’s cloud digital banking company, during the next three to five years, bringing its total investment to $125 million since 2018.
The $54 million investment, which is likely to be followed by future investments, “will enhance Lumin Digital’s ability to elevate its industry-leading platform for retail and business banking, including advanced features such as online account opening and other capabilities,” according to the PSCU announcement.
The money will also be used to help Lumin scale its product implementation and support capacity.
“Together with PSCU’s ongoing investments in its core programs like dispute management, data and analytics, fraud and more, this additional investment in Lumin Digital reinforces PSCU’s commitment to diversifying its business model and preparing both the cooperative and its credit unions for the future,” the joint announcement said.
“With the accelerated shift to digital and the evolving preferences of consumers, we are excited to further our investment in Lumin Digital to meet demand and enable continued growth,” said Chuck Fagan, president and CEO of PSCU, in the announcement.
“This additional investment, along with the ongoing investments we continue to make in our core programs, are squarely aligned with our strategic priorities of optimizing digital experiences, growing member engagement and providing industry-leading security solutions, all while delivering an unparalleled experience,” Fagan said.
Lumin has more than 1.25 million users under contract, more than half of which are using the digital banking solution. There are 23 credit unions on the Lumin Digital platform.
“Lumin’s tight integration with PSCU’s platform and other crucial products and services gives account holders access to a wide variety of powerful card features,” said Jeff Chambers, president of Lumin Digital, in the joint announcement.
PSCU Managing Vice President of Digital and Data Jeremiah Lotz told PYMNTS recently that credit unions can leverage their strengths through deep member relationships.
“When we think about the digital-only experiences for some of these challenger banks, one of the things that we definitely see missing is that ‘people helping people’ mentality, and that overall focus on the relationship with the member as their credit union defines them,” Lotz said.